IDFC First Bank Down 5% Following Weak Q3 Earnings; Brokerages Remain Cautious
Shares of IDFC First Bank were down by 5% on January 27 following a weak December quarter.
IDFC First Bank Down 5% Following Weak Q3 Earnings; Brokerages Remain Cautious
IDFC First Bank Down 5% Following Weak Q3 Earnings; Brokerages Remain Cautious
Followed by weak Q3 earnings, shares of IDFC First Bank were down by 5% on January 27. The banking majors’s net profit nearly halved to ₹339.4 crore in Q3, compared to ₹715.7 crore reported in the corresponding quarter a year ago.
As of 9:18 am, shares of IDFC First Bank were trading at ₹59.17 on the NSE.
On the other hand, Net interest income (NII) soared 14.4% to ₹4,902 crore in Q3FY25, compared to ₹4,286.6 crore in the same quarter last fiscal.
V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said in an exchange filing, “We are specifically tracking Micro-finance loan book closely considering the industry situation. The credit issues in the Microfinance segment are a transitionary issue which is likely to be resolved within a few quarters.”
Notably, the street already estimated a weak set of earnings for the December quarter. Morgan Stanley predicted lower earnings for the lender on account of tough macro economic conditions and moderation in revenue growth. Setting a target price of ₹58, Morgan Stanley has an 'equal-weight' stance on IDFC First Bank.
Jefferies highlighted similar concerns, pointing out weak outlook in the upcoming two to three quarters. However, the brokerage believes that a stable growth in other segments will ease the pressure.
